Hired Auto Coverage
If you need to rent an automobile, hired auto coverage replaces or can enhance the liability coverage that is already offered by the rental car company. This doesn't mean that you should not go ahead and obtain the physical damage coverage that is offered by the car rental company. This is necessary for when you are renting a car in your business's name.
When your business rents a car and you are involved in an accident, it is possible that the injured individual could initiate a lawsuit against you. You can revert to your general liability coverage when this occurs, but the protection that is offered by the hired auto coverage is going to protect you against specific damages as well.
But note that hired auto coverage does not always cover rental cars. You can cover other vehicles used for business use that are not owned by the company. By making sure you are protected, you can effectively ward off bad publicity and go on with your business as usual.
When you do invest in a rental car for business, there is a certain degree of general liability coverage that is provided by the rental car company and that is going to be the primary protection on the car. Sometimes it is enough and sometimes it isn't, especially when the car is being used by a business.
If the limits are reached by the rental car company's auto insurance, then your hired auto coverage will kick in and take care of the difference. This works out for all involved. It works out for the rental car company, the victim in the accident is given the compensation they need to take care of their medical expenses and any other damages incurred, and you are able to make up the difference in the compensation and go on with business as usual.
The same applies to any trucks that you may rent. You may rent trucks to move items or to conduct business in some way. Whatever reason, you want to make sure you have adequate protection in addition to the insurance that is provided by the rental car company.
Basically, any vehicle that you hire to be used in conducting business within your business, you will need to make sure you have insurance to cover any possible damages. You certainly don't want to be caught in a situation where a hired vehicle is involved in an accident and your business is cited for that accident. The consequences could be rather expensive.
There are times in which you may ask an employee to take the bank deposit to the bank or go get everyone lunch. If this is the case, then you may be held liable if the employee is in a wreck while on the clock and performing work duties.
Your hired auto coverage will pick up where the employees insurance leaves off. Nevertheless, there are times in which the employee's auto insurance policy will not cover an employee's car when it is being used for work purposes. The insurance company may not cover because they know that the employer should have hired auto coverage that will cover damages if the employee is in an accident while on the job.
So if you will be renting any type of vehicle or you will be asking an employee to perform certain work duties in their own vehicle, you want to make sure the interests of the business are protected with hired auto coverage. Because your policy can pick up where everyone else's leaves off, you can ensure that the adequate protection is acquired.